Originally Posted by mr. wally
greenland posted on the lg oled thread that lg is losing money selling televisions. so sony, panny, sharp and lg are all in a business in which none of them make any money.
explain how that business model is sustainable.
If the corporation feels that they will be able to turn a profit at Some Future Time, they may very well be willing to subsidize a losing division - perhaps for some years, if their pockets are deep enough, and/or someone Up High "believes" in the under-performing products.
See LG 2Q results page 16. TV is under "Home Entertainment" segment with 3.9% POSITIVE Operating Margins.
Still, for 2011, the Operating Income the Home Electronics (HE) division was Under 2%. The doubling to roughly 3.9% for the first 2 Qtrs of 2012 coincides with the addition of "the PC and Car business unit" to the HE unit. Seems likely that "PC & Car" is due credit for this Op Inc increase.
Also, HE consists of TV, Car & Media, IT (Monitor & PC) PLUS "CEM," which is expanded as "Chemical & Electronic Material" (
It would take more detail than is shown to determine whether or not "TV" activities result in an operating profit (or loss), because while one might ASSUME that "TV" is the largest unit of these 4, that is not spelled out. (And, even if it IS the largest unit in HE, a Small Loss in TV might be offset by gains in the three other units.)
In any event, based upon the figures provided it does seem un
likely that LG TV operations are Losing Money Hand-over-Fist....